NEED FOR EFFICIENT INVENTORY CONTROL SYSTEM IN SERVICE ORIENTED ORGANIZATION
ABSTRACT
The main aim of embarking on this project is to know the need for efficient inventory control system in service oriented organization at the associated Bus Company Head Office at Umuoba Uratta in Imo State.
This study attempts finding out whether the company practice or applies the system of inventory control effectively. It also sees to the functions and systems applied in carrying out the inventory control work so as to maintain continuity of material inflow and outflow in the storehouse.
As generally known, inventory is an American language while stock is a British word but all mean the same.
From the review of related literature inventory control is the means by which materials of the correct quantity and quality is made available as and when required with due regard to economy in storage and ordering cost, purchase price and working capital.
The researcher review the related literature which centers on inventory control, the role of material management in business organization, types of inventory control system the stores managers responsibility in relation to materials storage, the stock record system, reasons for keeping stock record, method of stock record, material deterioration, stock discrepancy, obsolescence of material, inventory control techniques etc. information in the accomplishment of the research work are all expressed.
CHAPTER ONE
INTRODUCTION
1.1 OVERALL OF THE STUDY
Inventory control system is a very vital issue as long as business management is concerned, and must not be let down in any business venture. Any organization that does not apply the sense of inventory control in their business transaction will definitely face cost reduction that will affect the corporate aim of that organization.
With this, inventory control system in service oriented companies like ABC Transport requires proper attention so as to prevent running out of service. This is because shortage in inventory (stock will interrupt production and leads to customers disappointment and thereby reduce the organization prestige and dignity in labor market.
According to Uzor (2005:34) Inventory control is the clerical control of the movement of materials in and out of the stores. He further defined it by quoting Morrison (1982:34) as the means by which materials of the correct quantity and quality is made available as when required with due regard to economy in storage and ordering cost, purchase price and working capital.
Purchasing journal (2005:21) further explains that inventory simply means or refers to as the control of items used in the operations of the business. This means that inventory control involve some processes.
1. Assessing the items to be held in stock
2. Deciding the extend of stock holding of items individually
3. Regulating the input of stock into the store house.
4. Regulating the issues of stock from the store house
This means that through the above processes, it is possible to adjust continuously the quantity and value of stock held to conform to the circumstances at all times.
1.2 STATEMENT OF PROBLEMS
The problems which inventory control management in ABC encountered is as follows
1. Logistics Problem: There is inadequate of mobility to transport materials to sub-units with this problem it affect the flow of materials.
2. Inadequate Space: Since the stores face the problem of space in store it will lead to deterioration of materials and also cause insufficient of materials in stores.
3. Inadequate Lighting and Ventilation: The stores face the problem of lighting and ventilation, depending on the type of materials stored, but in the case of ABC inadequate lighting and ventilation highly affect their stores.
4. Administration (manpower problem): Unskilled manpower affect the stores in ABC transports, since people employed has little or no idea of inventory management it affect the stores.
5. Insuffiency of Storage of Materials: There should be adequate means of storage in stores like shelve, trays, pallet, racks etc should be provided to enhance flow in inventory management.
1.3 OBJECTIVES OF THE STUDY
Some of the objectives of inventory control management in ABC is
1. To enhance good administrative of man power training. To provide means of training those that has little or no idea of the job.
2. To provide adequate means of transporting materials to sub-units and to places found necessary.
3. To ensure sound and appropriate space to store materials since 70% of materials are spare parts.
4. To provide sufficient storage of materials in stores so as to avoid damage in inventory control management.
5. To create room for adequate lighting and good ventilation in stores, thereby enhancing maximum flow of materials.
1.4 SIGNIFICANCE OF THE STUDY
This study will be very important or useful to the following people.
1. The researcher: it will help the researcher to secure her award for the Higher National Diploma
2. Other student: It will serve as data bank i.e. it will serve as reference materials to students.
3. Firms: It will help the firm to know currently if what they do can improve profitability or not.
4. Society: This study will help societies or industries who are not perfect in inventory control to sit-up and amend their errors
